Welcome,
Its your choice at the end of the day, taking a loan on a non performing asset till you're 65 seems like a risky move. Personally I would hate to have a obligation hanging on me pass 50 that would keep me bonded to my job.
But of course all of us would like to move to the next stage of desires, be it cars condo's landed property what have you. If I may I would suggest you minimize the loan term to 15 or even better 10 years. Why so? Simply because this is not an investment property and from your profile I don't reckon you your savings will go into another property investment. Best you pay everything off asap before you hit 55 and lead another 10 years of stress free living. It would mean some lifestyle cutbacks but better now then when you're pushing 60 plus.
As for your choice of property if you are selecting a leasehold new condo near an existing
MRT track its likely future gains have already been factored by the developers margins. In fact I could go on dissecting your choices and selected area (which I feel is over-hyped) but its pointless since you already decided and seem quite firm on it. Good luck with your sale.
Quote:
Originally Posted by Unregistered
Thanks for taking the time to write your comments.
I think our combined income of $120k pa is high enough to service a loan of $600k comfortably, even though rates may go up to 3%. If I lose my job, then that's a different matter altogether and I may need to downgrade to a 3 room HDB flat. But, like I said, our jobs are stable, trust me. We will only lose our job if we are paralysed.
About your point of depreciation, by the same logic, my 15 years old flat will also depreciate over time. Now it is worth $600k, in 20 years time it could then be worth $300k and eventually zero after all the lease is up. As for the condo, even though the value may go down from $1.2m to $1m, at least I would have enjoyed luxury condo living for 25 years. I will find a condo just next to an MRT station so that its value will remain strong even after many years as there will always be a chance that the condo will go for en bloc and I will definitely get more than $1.2m. |